Retail sales in Scotland are once again surging, with 0.5% YOY increase registered in March 2009 on account of better weather conditions and hike in food prices.
The Retail Sales Monitor of Scottish Retail Consortium (SRC) reveals that there was a 0.5% YOY increase in retail sales in March 2009, as reported by BBC. This surge in sales followed a downturn in the previous month that was the biggest decline in the Scottish sales since 2001.
The highest growth in food sales in 2009 provided the impetus to the business at stores which remained opened for over a year. In March 2009, the total food sales increased by 4.5% as compared to March 2008.
On the contrary, the sales of non-food items plunged by 3.5% on a like-for-like basis. Even on including the sales at some new retail stores opened in the previous year, sales fell by 1.3%, indicating to the sector’s continuous negative growth trend that has been observed every month since May 2008.
The total sales growth in March 2009 was convincingly ahead of the average 3.75% growth recorded in the previous six months starting from October 2008.
The favorable weather condition is the main reason for growth in the Scottish retail sector. The arrival of warmer and sunny weather after harsh winter boosted the sales. People showed keen interest in buying summer and spring attire collection, outdoor and DIY equipments, and garden furniture.
Additionally, high inflation in food prices played a crucial role in the growth of retail sales, as higher prices increased the profit margin of the retailers.
The industry experts believe that the retail industry as well as the people involved in the trade remained in a much better condition in Scotland in comparison to other regions of the UK, where sales dipped by 1.2% on like-for-like basis and the total sales grew by merely 0.6%.
According to a Research Analyst at RNCOS, “The Scottish retail sales in March 2009 gave indications of a positive trend for shopkeepers after the downfall in February 2009. Favorable weather, hike in food prices, and people increasingly purchased the luxury food products on the occasion of Easter might have lifted up the sales figures. However, it is still too early to draw any conclusion on the Scottish economy. Conditions are yet to turn fully into the favor of retailers and customers.”
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